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Kallanish Kallanish

Knowledge matters Knowledge matters

February, 19th 2019

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FEB 09

Italian scrap market in hiatus as values fall


The Italian scrap market is quiet, with both contracts in negotiation and sales being delayed due to a lack of agreement on prices between sellers and buyers, Kallanish hears from market sources.

Mills are offering €15/tonne ($18.3/t) less for the mixed low grade of new arisings grade E8 compared to last month. Some large merchants however are refusing to sign contracts at €305/t delivered, mostly because they have been unable to pass on dipping prices to their own suppliers. “We managed to pass on a €10/t decrease but not a €15-20/t fall,” a source comments.

While some smaller players have accepted this price for small quantities and lower quality material, the larger merchants are retaining material and are expected to sign contracts this week.

A similar situation is happening for shredded grade E40, the only grade for which contracts are signed monthly. E40 prices have not yet been agreed by the large merchants. In January E40 reached €335/t delivered, Kallanish notes. Demolition qualities purchased by rebar makers have lost €20/t m-o-m. E1 is now at €280-285/t while grade E3 is at 270/t delivered on average, sources suggest.